- Ethereum Gas Used fell by 16%, raising concerns about weakening network activity or a short-term cooldown phase.
- MVRV Long/Short Difference stays negative at -7.7%, even as short-term holders enjoy a 23% profit margin.
Ethereum [ETH] hovered around $2,512 after a mild 1.27% daily dip, maintaining its position above the $2,383 support while trading just under the neckline resistance at $2,824.
What makes this setup compelling is the textbook inverted head-and-shoulders pattern on the daily chart.
The formation stretches from early March through mid-June, anchored by higher lows and horizontal neckline resistance.
Naturally, this structure hints at a bullish breakout—if confirmed. The projected move would target Fibonacci extension levels at $2,933 and $3,237.
That said, ETH must close above $2,824 with strong momentum to activate the bullish trigger.
Source: TradingView
Are long-term holders still confident amid shifting wallet behavior?
Long-term wallet holdings remained flat over the past 30 days, reflecting neutral positioning from larger investors.
In contrast, investor-level wallets have increased by 6.46%, signaling moderate confidence from mid-sized holders.
Retail wallet concentration barely changed at +0.21%, showing hesitation from smaller participants.
These steady distribution trends suggest ETH’s supply remains tightly held, which may support volatility compression until a breakout or breakdown occurs.
A meaningful shift in this concentration could tilt sentiment more decisively in one direction.
Source: IntoTheBlock
What do ETH MVRV ratios reveal about market positioning?
At press time, Ethereum’s MVRV Ratio stood at 23.05%—a clear sign that recent buyers were sitting on profits.
But zoom out, and a different picture emerges.
The MVRV Long/Short Difference remained underwater at -7.71%, showing that long-term holders were still below their average cost basis.
This split creates a psychological fork in the road.
On one hand, short-term optimism often fuels rallies. On the other, long-term holders tend to act as the anchor during sustained trends.
Unless this gap narrows—ideally with both metrics rising together—ETH may continue moving sideways, stuck between hope and hesitation.
Source: Santiment
Is the sudden gas usage drop a concern for network health?
ETH’s gas usage plunged from over 65 billion to 55.06 billion, ending a prolonged period of high network activity. This drop may suggest either improved efficiency or declining on-chain demand.
While this shift hasn’t immediately impacted price structure, it does raise questions about the sustainability of network engagement.
If gas usage continues to fall alongside weak address activity, the bullish narrative may lose strength. However, if this is simply a reset phase, it could precede a resurgence in interaction.
Source: Santiment
Why does address growth signal early interest but weak conviction?
New wallet creation grew by 9.77% in the past seven days, yet Active Addresses declined by 1.35%. This disconnect shows that while more users are entering the ecosystem, fewer are engaging daily.
Such divergence often occurs in early phases of recovery when curiosity rises before conviction. If both metrics align upward, it would confirm a stronger foundation for growth.
For now, this pattern reflects cautious optimism and reinforces ETH’s current sideways trajectory.
Source: IntoTheBlock
Will ETH clear $2,824 or remain range-bound?
Ethereum’s setup shows promise with a well-formed bullish pattern, yet conflicting on-chain metrics demand caution.
Until address activity and valuation align with technical structure, ETH may continue trading sideways.
A breakout above $2,824 backed by renewed engagement could trigger rapid upside. Until then, the market awaits stronger confirmation.
